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What: Shares of Clearwire (NASDAQ: CLWR) have plunged today by as much as 20% after Bloomberg reported that Sprint Nextel (S) had no immediate plans to acquire the rest of Clearwire.
So what: In the wake of Sprint's deal with Softbank, Clearwire had soared yesterday on hopes that it was next on the acquisition to-do list, even though there was nothing official on the matter. Sprint even went as far as to specifically say that no actions were required regarding Clearwire for the Softbank deal to go through.
Now what: Bloomberg says that Softbank and Sprint are working to close the deal they just announced first, which could easily take up to six to eight months considering the highly regulated nature of the deal. Until that deal is sealed, neither company will be looking at any additional major mergers or acquisitions. Since Sprint already has the access it needs to Clearwire's spectrum, there's no immediate need to pursue a pricey acquisition.
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